S-Corporation Basis - Research Credit

Technical topics regarding tax preparation.
#1
Wiles  
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I have reviewed IRC 50(c)(5) and have determined that the research credit does reduce shareholder basis if the related research expenses have been reduced by the amount of credit, i.e. did not elect reduced credit. This reduction is treated the same as nondeductible expenses.

What I have not figured it out is if the ability to claim the research credit is suspended due to a lack of basis. I do not think that it is, but I just want to be sure.
 

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